Cambodian low-wage civil servants not to pay salary tax

Cambodian Prime Minister Hun Sen said Thursday that civil servants, whose net monthly wages are below 800,000 riel (200 U.S. dollars), will not be obliged to pay tax on salary.

"Currently, civil servants with a net monthly salary of 500,000 riel (125 U.S. dollars) upwards are required to pay salary tax, but the forthcoming 2015 budget law will impose salary tax only on those whose salary are over 800,000 riel (200 U.S. dollars)," he said during a graduation ceremony of about 6,700 students at the Cambodian University for Specialties.

"With this new rule, the state will lose revenues of 10 million U.S. dollars (per year)," he said.

The prime minister said low-wage civil servants and employees will get much benefit from the new rule.